SFC Energy (F3C) AI Stock Analysis

• Market Cap: €211.71M
• Dividend Yield: N/A
• Average Volume (3M): 43.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 5.15%
• EPS Growth: -101.58%
• Country: DE
• Employees: 470
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial - Machinery
• EPS (TTM): -0.07
• Shares Outstanding: 17,381,691
• 10 Day Avg. Volume: 43,763
• 30 Day Avg. Volume: 43,351
• PEG Ratio: -0.58
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 57.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €19.00
• Price Target Upside: 55.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: €12.00 ▼(-1.48% Downside)

SFC Energy's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The strong balance sheet is overshadowed by declining profitability and cash flow issues. Technical analysis indicates a downtrend, with the stock trading below key moving averages and nearing oversold conditions. The unattractive valuation, marked by a negative P/E ratio and no dividend yield, further impacts the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage indicates financial stability and flexibility, allowing SFC Energy to invest in growth opportunities and weather economic downturns.

Free Cash Flow Growth

Positive free cash flow growth suggests that SFC Energy is generating cash that can be reinvested into the business, supporting long-term growth and operational improvements.

Healthy Gross Profit Margin

A healthy gross profit margin indicates efficient cost management and pricing power, which can sustain profitability and competitive positioning over time.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests potential challenges in market demand or competitive pressures, which could impact future earnings and market share.

Decreased Profit Margins

Decreased profit margins reflect operational inefficiencies or increased costs, which can hinder profitability and require strategic adjustments to improve financial performance.

Negative Operating Cash Flow

Negative operating cash flow indicates challenges in generating cash from core operations, potentially limiting the company's ability to fund growth and meet financial obligations.

SFC Energy Business Overview & Revenue Model

Company Description

SFC Energy AG develops, produces, and distributes systems and solutions for stationary and mobile off-grid power supply based on hydrogen and direct methanol fuel cells worldwide. The company operates in two segments, Clean Energy and Clean Power Management. It offers EFOY Hydrogen 2.5 fuel cells for higher power ranges; EFOY Pro fuel cells for on-board power supply in vehicles, as well as off-grid power supply, such as monitoring systems, measuring stations, and oil and gas applications; EFOY fuel cells, which ensures automatic recharge of the batteries; SFC EMILY for military and security applications; SFC JENNY, a portable fuel cell for military applications; and SFC Power Manager 3G, a portable power distributor and battery charger that enables the soldiers to use various energy sources available in the field, such as hybrid batteries, solar panels, and vehicle power and fuel cells to power devices or charge batteries. The company also provides EFOY ProCube, a mobile and maintenance-free solution for off-grid power supplies; EFOY ProEnergyBox, an off-grid energy solution for weather conditions; EFOY ProEnergyCase, a portable and maintenance-free solution for grid-independent power supplies; EFOY ProCabinet, an insulated outdoor energy solution for remote off-grid power supply; EFOY ProTrailer, a trailer-based energy solution; drives and motor solutions; SCADA and telemetry solutions; and coils and linear drives. In addition, it offers accessories and spare parts, such as fuel cartridges; and mechanical, electronic, and electrical instruments to monitor and control production and logistics processes. The company was formerly known as SFC Smart Fuel Cell AG and changed its name to SFC Energy AG in July 2010. SFC Energy AG was founded in 2000 and is headquartered in Brunnthal, Germany.

How the Company Makes Money

SFC Energy generates revenue through the sale of its fuel cell systems and related products, which are used in various sectors including military, telecommunications, and transport. The company's revenue model is primarily based on direct sales of fuel cells, along with service contracts for maintenance and support. Key revenue streams also include partnerships with companies in the energy and transportation industries, where SFC provides customized energy solutions. Additionally, the company benefits from government incentives and grants aimed at promoting renewable energy technologies, which can further bolster its earnings.

SFC Energy Financial Statement Overview

Summary

SFC Energy demonstrates solid revenue growth and a strong balance sheet with low leverage. However, profitability has been pressured, and cash flow challenges persist, indicating areas for improvement in operational efficiency and cost management.

Income Statement

SFC Energy has shown consistent revenue growth, with a TTM growth rate of 2.92%. The gross profit margin is healthy at 40.86%, indicating efficient production processes. However, the net profit margin has decreased to 4.50% in the TTM, reflecting increased costs or expenses. The EBIT and EBITDA margins have also declined compared to the previous year, suggesting potential operational challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 71.45%, indicating financial stability. The debt-to-equity ratio is low at 0.13, suggesting prudent leverage management. However, the return on equity has decreased to 4.65% in the TTM, which may indicate less efficient use of equity capital.

Cash Flow

The cash flow statement reveals challenges, with negative operating and free cash flows in the TTM. The free cash flow growth rate is high at 1134.19%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is low at 0.18, suggesting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.27M	144.75M	118.15M	85.23M	64.32M	53.22M
Gross Profit	56.88M	59.32M	45.32M	31.41M	22.64M	17.92M
EBITDA	11.27M	21.28M	15.60M	8.58M	-807.74K	-999.74K
Net Income	-369.49K	9.40M	21.08M	2.02M	-5.83M	-5.18M
Balance Sheet
Total Assets	187.20M	194.13M	176.40M	147.17M	87.37M	86.33M
Cash, Cash Equivalents and Short-Term Investments	41.05M	60.49M	59.85M	65.22M	24.95M	31.46M
Total Debt	16.24M	18.14M	16.35M	14.62M	9.49M	12.45M
Total Liabilities	49.53M	54.91M	48.27M	43.73M	37.35M	31.49M
Stockholders Equity	137.95M	139.28M	128.16M	103.44M	50.02M	54.84M
Cash Flow
Free Cash Flow	-16.54M	5.29M	-2.82M	-9.96M	-2.70M	-4.87M
Operating Cash Flow	-12.40M	14.46M	3.58M	-4.76M	1.08M	-595.38K
Investing Cash Flow	-7.34M	-11.08M	-5.48M	-5.20M	-3.87M	-4.28M
Financing Cash Flow	-3.31M	-3.10M	-2.68M	50.18M	-4.05M	15.43M

SFC Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:F3C, the sentiment is Negative. The current price of 12.18 is below the 20-day moving average (MA) of 12.33, below the 50-day MA of 14.02, and below the 200-day MA of 18.84, indicating a bearish trend. The MACD of -0.50 indicates Negative momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 32.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:F3C.

SFC Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAG	75 Outperform	€139.17M	10.06	8.44%	1.82%	-26.69%	-1.95%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TPE	62 Neutral	€475.89M	30.33	10.84%	―	-8.62%	-38.42%
TTR1	61 Neutral	€221.05M	20.62	10.85%	1.66%	―	―
F3C	49 Neutral	€211.71M	-574.53	-0.27%	―	5.15%	-101.58%
LPK	48 Neutral	€131.06M	-129.85	-1.16%	―	-1.24%	41.31%
RSL2	40 Underperform	€95.31M	-22.66	-5.89%	―	-11.00%	-1.60%